Life insurance

9 October 2018

A killer can’t inherit

Texas, like many other states, prohibits a killer from receiving life insurance proceeds or inheriting from an estate.  Such prohibitions are commonly referenced as either a “slayer statute” or a “slayer rule.” The public policy is obviously that a killer should not financially benefit from a death he or she willfully causes.  Given the sizes of many estates and life insurance policies, such scenarios are unfortunately not uncommon.   Certainly, investigators and prosecutor will look to whether insurance or estate proceeds might have provided motive for a particular murder. There have even been some notorious cases of people taking out […]
10 May 2017

Account designations in favor of an ex-spouse

For decades, Texas law has provided that a designation of a spouse as a beneficiary in a life insurance policy or a will is rendered void by a divorce. The exceptions are limited. The provision regarding life insurance policies is found in Section 9.301 of the Texas Family Code. The provision regarding wills is found in Section 123.001 of the Texas Estates Code. These provisions often arise in my life insurance beneficiary dispute practice and in estate disputes. Until recently, there was no similar provision regarding beneficiary designations for multi-party financial accounts. In 2015, the Texas legislature added Texas Estates […]
21 December 2016

Challenging non-testamentary designations

Much of the “action” in probate litigation these days does not involve challenges to testamentary dispositions.  Instead, I see more of a trend in my practice of challenges to beneficiary designations.  Those include designations for: life insurance accidental death insurance bank accounts investment accounts 401k accounts IRA accounts certificates of deposit ERISA accounts Typically, a letter to an institution asserting a challenge will be sufficient to put payment in suspense.  That will lead to a period of opportunity for negotiation and, failing that, an interpleader suit.  I have encountered a few situations where a financial institution, usually a brokerage, will demand […]
11 May 2016

Mind your QDRO

I routinely handle life insurance beneficiary disputes. As I mentioned in a previous post, the first issue I analyze is whether the life insurance policy is governed by state law or by a federal law known as ERISA. Many ERISA policy disputes involve claims by former spouses to life insurance benefits.  Many states bar former spouses from receiving life insurance benefits if the designation was  made prior to the divorce. But such state laws are generally superseded by ERISA.  Often there is a claim that the former spouse waived their beneficiary status in the divorce decree.  A state divorce decree judgment […]
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